Funds of the Bitbon System

The Appendix to the Bitbon System Public Contract “Funds of the Bitbon System” (hereinafter — Appendix) specifies the list of funds of the Bitbon System, as well as the terms and procedure for their creation, suspension or closure and other terms of their functioning.

SECTION 1. GENERAL PROVISIONS

Chapter 1. Terms and Definitions

Article 1. Use of Terms

1. The terms used in this Appendix shall be interpreted in accordance with the definitions given in the Appendix to the Bitbon System Public Contract Terms and Definitions in the Bitbon System Social Network.

Chapter 2. Subject and Structure of the Appendix

Article 2. Subject of the Appendix

1. This Appendix regulates relations between Bitbon System Users[i] (hereinafter — User) that arise during functioning of the Bitbon System funds (hereinafter — fund).

2. This Appendix establishes the list of funds as well as the terms and procedure for their creation, suspension or closure and other terms of their functioning.

Article 3. Structure of the Appendix

1. This Appendix consists of the preamble, sections, chapters, which consist of articles that include parts and paragraphs. The structure of the Appendix includes links and references to the Provisions of the Bitbon System Public Contract as well as to separate Appendices, which are an integral part of the Bitbon System Public Contract.

SECTION 2. OPERATIVE PROVISIONS

Chapter 3. Funds of the Bitbon System

Article 4. Concept of Funds of the Bitbon System and Their List

1. Funds are components[i] intended for accumulating digital asset units[i] from various sources and incomes envisioned by the Bitbon System Public Contract for their further redistribution to solve the tasks specified during their creation.

2. The Bitbon System[i] envisions the following funds:

  • capitalization[i] fund of the Bitbon System (hereinafter — capitalization fund);
  • providing[i] fund of the Bitbon System (hereinafter — providing fund);
  • infrastructure fee fund of the Bitbon System (hereinafter — infrastructure fee fund).

3. The list of funds is not exhaustive and may be supplemented based on a decision of Bitbon System Participants[i](hereinafter — Participant).

Article 5. Concept of Capitalization Fund of the Bitbon System

1. Capitalization fund is a Bitbon System component managed by Bitbon System Participants.

2. The purpose of the capitalization fund is to provide a mechanism that allows Participants to develop the Bitbon System in the interests of all its Users.

3. The capitalization fund Assetbox[i] is 0xad39b153f74cdba8353068d3e0dbfe773397c7a5 (alias[i]: Bitbon System Capitalization Fund).

Article 6. How to Add Digital Asset Units to the Capitalization Fund of the Bitbon System

1. On March 13, 2018, out of the total number of Bitbon[i] digital asset units (hereinafter — Bitbon units) issued in accordance with paragraph 3 of Provision 7 of the Bitbon System Public Contract, SIMCORD LLC as the founder of the Bitbon System transferred 70,000,000.00 Bitbon digital units to the Assetbox of the capitalization fund for distribution through affiliated partners.

2. 21,016,289.28975366 Bitbon units that were not used from the Bitbon System capitalization fund before October 10, 2018 in accordance with paragraph 5 of Provision 7 of the Bitbon System Public Contract remained in the Assetbox of the Bitbon System capitalization fund in order to ensure the processes aimed at developing the Bitbon System, in particular to ensure automatic contributing[i] by the capitalization fund.

3. Only digital asset units can be added to the capitalization fund Assetbox.

4. Digital asset units can be added to the capitalization fund Assetbox as a result of participating in the obventing[i] process as well as by transferring digital asset units from Users and/or components and base services of the Bitbon System[i].

5. The report on the capitalization fund functioning is available in the Audit and Statistics section on the official information resource of the Bitbon System[i].

Article 7. Concept of Providing Fund of the Bitbon System

1. Providing fund is a Bitbon System component that accumulates Bitbon units (hereinafter — Bitbon units) received from the infrastructure fee fund and distributes them among Bitbon System Providers[i] (hereinafter — Provider) based on the role[i] of a Provider: Registrator[i] and/or Partitioner[i].

2. The purpose of the providing fund is to enable Providers to receive remuneration from such activity as a result of distribution of Bitbon units performed by the providing fund in accordance with the Bitbon System Public Contract.

3. The providing fund Assetbox is 0x82ccf67061e2f11c3a317f2799ec0b119e96b5b0 (alias: Providing Fund Assetbox).

Article 8. How to Add Bitbon Units to the Providing Fund of the Bitbon System

1. To enable providing, 30,000,000.00 Bitbon units were transferred from the capitalization fund to the providing fund in order to optimize the processes related to the participation of Providers in supporting and developing the decentralized execution environment of the Bitbon System in accordance with paragraph 4 of Provision 7 of the Bitbon System Public Contract.

2. Only Bitbon units can be added to the providing fund.

3. A part of the infrastructure fee[i] is deposited from the infrastructure fee fund to the providing fund for further distribution of remuneration among Providers according to the procedure established by the Appendix to the Bitbon System Public Contract Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution.

4. Only Bitbon units from sources envisioned by the Bitbon System Public Contract, this Appendix and/or other Appendices that are an integral part of the Bitbon System Public Contract can be added to the providing fund.

5. The report on the providing fund functioning is available in the Audit and Statistics section on the official information resource of the Bitbon System.

Article 9. Procedure for Distributing Bitbon Digital Asset Units from the Providing Fund of the Bitbon System

1. The activity of Providers launches the mechanism for distributing remuneration, which is based on the redistribution of Bitbon units in the Bitbon System from the providing fund to the Assetboxes of Providers.

2. Every providing period (72 hours), a certain number of Bitbon units are allocated from the providing fund for subsequent distribution among Providers as remuneration.

3. Bitbon units are distributed from the providing fund among Registrators and Partitioners in the ratio specified in the Appendix to the Bitbon System Public Contract Bitbon System Provider.

Article 10. Concept of Infrastructure Fee Fund of the Bitbon System

1. Service fee fund is a Bitbon System component that accumulates Bitbon units received from infrastructure fees for their further distribution according to the procedure established by the Appendix to the Bitbon System Public Contract Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution.

2. The purpose of the infrastructure fee fund is to provide a mechanism for maintaining and developing the Bitbon System infrastructure[i].

3. The infrastructure fee fund Assetbox is 0x3378e5ae151544af24ff268a501c0759bd9b8433 (alias: Bitbon System Service Fee Fund).

Article 11. How to Add Bitbon Units to the Infrastructure Fee Fund of the Bitbon System

1. Only Bitbon units can be added to the infrastructure fee fund.

2. 100% of the infrastructure fee is deposited in the infrastructure fee fund for further distribution according to the procedure established by the Appendix to the Bitbon System Public Contract “Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution”.

3. Only Bitbon units from sources envisioned by the Bitbon System Public Contract, this Appendix and/or other Appendices that are an integral part of the Bitbon System Public Contract can be added to the infrastructure fee fund.

4. The report on the infrastructure fee fund functioning is available in the Audit and Statistics section on the official information resource of the Bitbon System.

SECTION 3. CONCLUDING PROVISIONS

Chapter 4. General and Other Terms and Conditions

Article 12. General Terms and Conditions

1. Amendments and/or additions to this Appendix may be made solely under the rules stipulated by the Appendix to the Bitbon System Public Contract Making Amendments and/or Additions to the Bitbon System Public Contract.

2. If there is any discrepancy between various forms (printed, electronic, etc.) of this Appendix, its electronic version published on the official information resources of the Bitbon System shall be deemed official.

3. This Appendix is translated into other languages only for convenience of Users. In case of differences in understanding and/or interpretation of this Appendix, the Russian version shall prevail.

4. Only the Bitbon System Operators[i] are entitled to give an official explanation of this Appendix.

5. In accordance with Provision 2 of the Bitbon System Public Contract, this Appendix is an integral part of the Bitbon System Public Contract and comes into force after its publication on the official information resources of the Bitbon System.

6. In accordance with paragraph 3 of Provision 2 of the Bitbon System Public Contract, amendments and/or additions may be made to this Appendix only if such amendments and/or additions do not contradict the Provisions of the Bitbon System Public Contract and Appendices, which are an integral part of the Bitbon System Public Contract. Amendments and/or additions made to this Appendix shall be published on the official information resources of the Bitbon System and come into force after their publication.

Article 13. Other Terms and Conditions

1. The Operators strive to maintain uninterrupted functioning of the funds. By using the Bitbon System infrastructure, the User agrees that there is a possibility of disruptions in the operation of the Bitbon System infrastructure, which may lead to a temporary interruption of the operation and limitation of access to the functionalities of the components and/or base services in whole or in any part.

2. The User shall not use the Bitbon System infrastructure if he/she does not accept the terms and conditions established by the Bitbon System Public Contract in whole or in any part.

3. The use of the Bitbon System infrastructure shall mean agreement of the User with the terms and conditions established by the Bitbon System Public Contract.